Vodafone Posts H1 Loss of £1.88B

An impairment charge of £5.9B related to operations in Italy and Spain sends Vodafone into the red for the first half of its financial year

November 13, 2012

2 Min Read


  • H1 Group organic service revenue growth -0.4%; N. Europe +1.5%, S. Europe -9.8%, AMAP +5.2%

  • Q2 Group organic service revenue growth -1.4%; N. Europe +0.7%, S. Europe -11.3%, AMAP +4.1%

  • H1 EBITDA down -2.9%* to £6.6 billion; EBITDA margin down 1.0 percentage point

  • Adjusted operating profit £6.2 billion, up 8.5%; expected to be in the upper half of the guidance rangefor the full year

  • Impairments totalling £5.9 billion for Spain and Italy as a result of challenging market conditions andchanges to discount rates

  • Free cash flow £2.2 billion; expected to be in the lower half of the guidance range for the full year

  • Interim dividend per share of 3.27 pence, up 7.2%

  • £2.4 billion dividend due from Verizon Wireless by the end of 2012; £1.5 billion buyback to commenceafter receipt

  • Continued strong growth in data +13.7% and emerging markets (India +11.0%, Vodacom +4.6%,Turkey +18.0%) in Q2

  • Smartphone penetration in Europe now 30.7%, with 45.5% of European mobile service revenue nowin-bundle; new tariff plans launched across major European markets since September

  • Enterprise revenue declined -0.4%; continued strong growth in Vodafone Global Enterprise, M2M andVodafone One Net offset by macroeconomic challenges in country-level enterprise units

  • Continued execution of efficiency programme, with £300 million absolute reduction in European opextargeted in the 2014 financial year

    Vittorio Colao, Group Chief Executive, commented: “We have continued to make progress on our strategic priorities over the last six months, with good growthin data and emerging markets in particular. In the short-term, however, our results reflect tougher marketconditions, mainly in Southern Europe.“We remain very positive about the longer-term opportunities, and our Vodafone 2015 strategy reflectsour confidence in the future. This is based on a new strategic approach to our consumer offer and pricingin Europe now being rolled out, an increasing focus on unified communications in enterprise, and anattractive and growing exposure to emerging markets. Fundamental to the success of this strategy will bean ongoing enhancement of the consumer and enterprise customer experience through continuousinvestment in high speed data networks, and an increased drive towards standardisation and simplificationacross the Group to maximise cost efficiency and accelerate execution.”

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